Corrective Actions Related to Federal Grants and Opportunity for a Hearing
Corrective actions can be imposed by the Department of Grants and Federal Fiscal Compliance when organizations fail to comply with the terms and conditions of federal grant programs. The purpose of the corrective action is to ensure that the organization corrects the noncompliant activity.
TEA may identify you as noncompliant because of findings in a single audit, a federal monitoring review, or because of concerns identified through other means. Once identified, you will receive a letter notifying you that you are required to complete a corrective action. The letter describes the areas of noncompliance; the required corrective action, including any enforcement actions; and the required completion date.
Types of Noncompliance
Types of noncompliance may include, but are not limited to, the following:
- Expenditure of funds or conducting activities that are not in accordance with the grant’s authorizing statute, regulations, guidelines, or approved application.
- Failure to account for funds in accordance with financial management standards or with the Financial Accountability Resource (FAR) guide of TEA's Financial Accountability System Resource Guide (FASRG).
- Findings in a single audit conducted by an independent auditor.
- Failure to comply with federal maintenance of effort requirements under the Individuals with Disabilities Education Act (IDEA) or the No Child Left Behind Act of 2001 (NCLB).
- Failure to comply with federal comparability requirements under Title I of NCLB.
- Failure to comply with:
- One or more of the provisions and assurances in the grant application
- Programmatic or fiscal reporting requirements
- Previous required corrective actions, refund requests, or special conditions
TEA may impose an enforcement action as part of a corrective action or for noncompliance with a previous corrective action. Title 2 of the Code of Federal Regulations (CFR), Part 200.338, authorizes TEA to impose enforcement actions. Enforcement actions may include the following:
- Temporarily withhold cash payments pending correction of the deficiency or more severe enforcement action.
- Disallow all or part of the cost of the activity or action not in compliance.
- Wholly or partly suspend or terminate the federal award.
- Initiate suspension or debarment proceedings.
- Withhold further federal awards for the grant.
- Take other remedies that may be legally available.
TEA may deny your grant application for federal funding as an enforcement action.
Opportunity for a Hearing
Section 157.1082 of Title 19 of the Texas Administrative Code entitles organizations that have enforcement actions imposed upon them to request a hearing. Applicants for federal grant funds that have their applications disapproved by TEA are also entitled to request a hearing as described in 34 CFR 76.401.
How to Request a Hearing
The hearing must be requested within 30 calendar days of the date of your notification letter and must be requested in accordance with the procedures specified in the authorizing statute. The opportunity to request a hearing will be void 31 calendar days after the date of the notification letter.
If the enforcement action imposed upon your organization relates to refunds of over $1,000,000, TEA will include information about your right to a hearing in the notification letter.
If you request a hearing, you must specify all of the following:
- The action or proposed action that is the subject of the requested hearing
- The statutory or regulatory authority identifying and supporting a finding that a violation occurred by TEA in enforcing the decision
- Specific facts supporting a finding that the action taken by TEA is in error
Please use one of the following methods to submit a request for hearing:
- Send the request certified mail with a return receipt request;
- Fax the request to: (512) 475-3662; or
- Hand deliver the request to:
Director of Hearings
Texas Education Agency
1701 N. Congress Ave., Suite 2-150
Austin, TX 78701-1494
The request for hearing will be considered filed at the time it is received by the Director of Hearings or the designated docket clerk in the TEA
How to Complete a Corrective Action
To complete a corrective action, your organization must demonstrate that it has corrected the activity that caused the noncompliance. Your organization must do this by providing specific documentation that supports the completion of the corrective action.
Submit the required documentation to the TEA federal fiscal compliance officer at firstname.lastname@example.org. You can also use this email address if you have questions about your corrective action, or you can call (512) 463-9918.
Where to Send Refunds
If your corrective action requires repayment of federal funds, a refund form will be included in your notification letter. Complete the shaded fields of the form and submit the form and refund to:
Texas Education Agency-MSC
PO Box 13717
Austin, TX 78711-3717
Potential Consequences of Failing to Comply
Failure to complete the corrective actions in a timely and adequate manner (by the deadline given in the notification letter) can result in TEA taking further enforcement actions against your organization. See 2 CFR 200.338 for more information.
Notice of Agency Policy
TEA conducts federal fiscal grant subrecipient monitoring and compliance reviews and implements related enforcement actions in accordance with its established policies and procedures. These policies and procedures incorporate best practices and standards that may be similar to common auditing standards, but the agency does not apply a specific set of external standards, such as the US Government Accountability Office’s Generally Accepted Government Auditing Standards (Yellow Book), nor is it required to do so. For more information, contact the Federal Fiscal Compliance Division.